he price of Bitcoin recently took a serious correction after it recently broke its ATH of over $108,000 earlier this week, falling to a low of $98,839 which has stabilized at approximately $100,798 at the time of writing, down 5.15% in the last 24 hours.
It has not only pulled Bitcoin down but also forced a more general market adjustment, with the total value of the cryptocurrency market down 7.23% to around $3.42 trillion.
The latest period of market volatility saw the liquidation of $817.93 million in positions, including $753.17 million in longs and $110.46 million in shorts, according to data from CoinGlass. The latest wave of liquidations reflects the heightened turbulence faced by investors.
Bitcoin Dominance Squeezes Altcoin Gains
Increased Bitcoin dominance in the market has siphoned momentum from altcoins. Major cryptocurrencies including Ethereum, XRP, Cardano and Dogecoin have all suffered deeper declines than Bitcoin.
The Altcoin Season Index, which measures the relative performance of altcoins compared to Bitcoin, fell from 65 to 49. Generally, a reading above 50 points indicates that altcoin is outperforming Bitcoin; the reverse was the case with the decline in this measure, implying a drain of strength from the altcoins-and that's precisely the case with the dip.
Bitcoin's ever-increasing dominance is getting closer to a critical point, and according to analysts, if it manages to overcome this level, it would seal altcoins to the fate of ending their recent bull trend. This shift does indicate growing interest on the part of investors in Bitcoin, perhaps due to favorable macroeconomic factors and institutional trends toward the top cryptocurrency.
Market Sentiment and Future Predictions
Despite these latest setbacks, some key figures in the financial space are still offering optimistic projections of Bitcoin's future. Popular author and Bitcoin bull Robert Kiyosaki recently wrote about a $350,000 price target for Bitcoin by 2025.
This is a far more conservative prediction than his earlier $500,000 forecast but still suggests the potential for 250% growth on Bitcoin's current price. Kiyosaki is particularly bullish on Bitcoin because he has invested in it in the long term, hedging against an economically unstable economy.
Analysts also believe that once Bitcoin settles down, the altcoins will rise in value. Michael van de Poppe is among the analysts who believe that the altcoins will have an explosive rally after Bitcoin settles down.
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